Wednesday, November 23, 2011

The Big Lie

I'm not a big fan of the Federal Government, but some stuff spewed by right wing idiots is just to much to take.  Those Chumps believe just about anything.  For the rest of us, propaganda can be countered.  In this example, the Big Lie that the financial crisis was caused as a result of poor, helpless banks being forced to make loans to people who could not afford them is skewered.

From Examining the big lie: How the facts of the economic crisis stack up:
•The boom and bust was global. Proponents of the Big Lie ignore the worldwide nature of the housing boom and bust.
A McKinsey Global Institute report noted “from 2000 through 2007, a remarkable run-up in global home prices occurred.” It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by one set of factors (ultra-low rates, securitized AAA-rated subprime, derivatives) but had a different set of causes in the United States. Indeed, this might be the biggest obstacle to pushing the false narrative. How did U.S. regulations against redlining in inner cities also cause a boom in Spain, Ireland and Australia? How can we explain the boom occurring in countries that do not have a tax deduction for mortgage interest or government-sponsored enterprises? And why, after nearly a century of mortgage interest deduction in the United States, did it suddenly cause a crisis?
The housing bubble was (and is) a global problem.   The U.S. economy does not exist in a vacuum.   Also, I would like to see morons who believe this particular Big Lie to explain how the U.S. government forced them to package and sell financial junk like derivatives.

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